Douglas Stoneley-Hulme has been running the Antelope, in Kearsley, Bolton, since May 1999 when it was an Inn Partnership venue. In March 2001 he signed a new 10-year agreement.
In March 2004, with Punch now the owner, a rent review was due for Stoneley-Hulme, who was paying £26,000 a year in rent. His net profit for the year ending March 2003 was £17,000 rising to £20,000 for the year ending March 2004. Punch asked for a rent increase to £46,000 originally. 'It would have left us with no profit whatsoever,' he says.
Punch came back with a reduced rent suggestion of £45,000. A number of meetings later Punch reduced its rent target to £40,000. His adviser told him that the problem with taking the situation to arbitration was that the decision might go in Punch's favour since they had reduced their demand twice. When Punch returned with an offer of £38,000, he reluctantly settled. Since June 2004, his takings have reduced from £5,500-a-week to between £4,200 and £4,500. In the past three months, Stoneley-Hulme says he had to introduce £7,000 of his own capital to meet his bills. His lease has been on the market for £57,500 but interested parties have tended to be concerned about the rent level. He is inclined to quietly agree that it is steep. Punch has now given him a rent concession that knocks £100-a-week off his £730-a-week rent bill for six weeks.
'Punch has insisted it will not look at the rent situation again, but I now need to see someone desperately. I did tell them we were going to struggle (on this rent).' Last week, his business development manager went away with his accounts to see if there is anything further Punch can do.
Do you have a rent-based story. Is your pubco increasing your rent? Is it reducing your rent? Ring The PMA Team on 01293 610344 and tell him about it.